The Dynamic Interplay between Working Capital Management and Profitability: Empirical Insights from European Markets

This study examines the impact of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non-performing loans, capital adequacy ratio, net interest margin, loan-to-deposit ratio, debt to equity ratio, and bank size. The study is based on secondary data of 15 commercial banks with 105 observations for the study period from 2015/16 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, net interest margin, and debt-equity ratio on the financial performance of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, capital adequacy ratio has a negative impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to decrease in return on assets and return on equity. Likewise, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In contrast, loan-to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan-to-deposit ratio, lower would be the return on assets and return on equity. In addition, debt-to-equity ratio has a negative impact on return on assets and return on equity. It indicates that increase in debt-to-equity ratio leads to decrease in return on assets and return on equity. Moreover, bank size has a positive impact on return on assets and return on equity. It indicates that larger the bank size, higher would be the return on assets and return on equity.

This study examines the effect of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are bank size, operating efficiency, net interest margin, non-performing loan, capital adequacy ratio, and loan-to-deposit ratio. The study is based on secondary data of 12 commercial banks with 108 observations for the study period from 2014/15 to 2022/23. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of capital adequacy ratio, non-performing loan, operation efficiency and bank size on the profitability of Nepalese commercial banks. The study showed that non-performing loan has a negative impact on return on assets. It indicates that higher the non-performing loans, lower would be the return on assets. In contrast, non-performing loan has a positive impact on return on equity. It indicates that increase in non-performing loan leads to increase in return on equity. Similarly, capital adequacy ratio has a positive impact on return on assets. It indicates that higher the capital adequacy ratio, higher would be the return on assets. However, capital adequacy ratio has a negative impact on return on equity. It indicates that higher the capital adequacy ratio, lower would be the return on equity. Further, net interest margin has a positive impact on return on assets and return on equity. It indicates that increase in net interest margin leads to increase in return on assets and return on equity. In addition, loan to deposit ratio has a negative impact on return on assets and return on equity. It indicates that higher the loan to deposit ratio, lower would be the return on assets and return on equity. Similarly, operating efficiency has a negative impact on return on assets. It indicates that higher the operating efficiency, lower would be the return on assets. In contrast, operating efficiency has a positive impact on return on equity. It indicates that increase in operating efficiency leads to increase in return on equity. In addition, bank size has a negative impact on return on assets and return on equity. It indicates that larger the bank size, lower would be the return on assets and return on equity.

This study examines the impact of electronic payment system on the profitability of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are mobile banking, quick response code payment, automated teller machine, digital wallet, credit cards and point of sales. The study is based on primary and secondary data of 8 commercial banks with 130 respondents. To achieve the purpose of the study, structured questionnaire is prepared. Secondary data were collected from Banking and Financial Statistics published by Nepal Rastra Bank and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of electronic payment system on the profitability of Nepalese commercial banks. The study showed that mobile banking has a positive relationship with return on assets and return on equity. It indicates that better the mobile banking services provided by banks, higher would be the return on assets and return on equity. Similarly, QR payment has a positive relationship with return on assets and return on equity. It indicates that more the payment through QR payment services, higher would be the return on assets and return on equity. Likewise, ATM banking has a positive relationship with return on assets and return on equity. It indicates that better the ATM services provided by the banks, higher would be the return on assets and return on equity. Further, digital wallet has a positive relationship with return on assets and return on equity. It indicates that higher the practices of digital wallet banking, higher would be the return on assets and return on equity. In addition, credit card has a positive relationship with return on assets and return on equity. It indicates that higher the number of payments through credit card, higher would be the return on assets and return on equity. Moreover, POS banking has a positive relationship with return on assets and return on equity. It indicates that practice of point of sales banking leads to increase in return on assets and return on equity.

The corporate governance mechanism was initiated to curb the excesses of managers that are saddled with the running of firm and also protect the shareholders and public interest. However, the collapse of big firms all over the world few years ago has awaken a renewed interest in firm adherence to corporate governance mechanism. Similarly, in Nigeria some firms also face similar situation. This study set out to examine the impact of corporate governance on manufacturing firms’ financial performance in Nigeria. The data used were collected from 39 listed manufacturing firms in the Nigerian Exchange Group from 2003 to 2022. The panel regression technique was used to determine the impact of corporate governance on financial performance. The study used three measures of manufacturing firms’ financial performance namely; Return on Asset (ROA), Return on Equity (ROE) and Tobin Q. Seven variables were used to measured corporate governance namely; Independence Board (IND), Board Meeting (BM), Audit Committee (AUD), Board Structure/Composition (BOC), Board Size (BOS), Executive Stock Ownership (EXS) and Nomination Committee (NOC), and the control variable was Firm Age. These variables were subjected to several test; Variance Inflation Factor (VIF). The Breusch-Godfrey Serial Correlation Langragian Multiplier Test, Breusch-Pegan-Godfrey Heteroskedasticity and the Hausman Test selected the Random Effect Panel regression. The study found that AUD had a positive effect on ROA and Tobin Q but negative with ROE, BOS had a negative effect on ROA, and ROE but positive with Tobin Q, BM had a negative effect on ROA, and Tobin q but positive with ROE. BOC had a negative effect on ROE and Tobin Q but positive ROA. EXS had negative effect on ROA and Tobin Q, but positive with ROE. IND had a positive effect on ROA and ROE but negative with Tobin Q. FAGE had a positive effect on ROA and ROE but negative with Tobin Q while NOC had positive effect on all the three measures of manufacturing firms’ financial performance. We concluded that corporate governance had significant effect on manufacturing firms’ financial performance in Nigeria. However, when different measurements were used to proxy firm financial performance the effect contrasts, this may be attributed to both the market value and operating value of financial performance adopted for this study. Hence, the study cannot draw conclusion on which of the manufacturing firm’s financial performance is better.

This study examines the effects of accounting information system on organization profitability in Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the selected dependent variables. The selected independent variables are non performing loan (NPL), loan loss provision (LLP), capital adequacy ratio (CAR), credit to deposit rate (CRR) and bank size (BS). The study is based on secondary data of 15 commercial banks with 120 observations for the study period from 2014/15 to 2021/22. The data were collected from Bank Supervision Report published by Nepal Rastra Bank (NRB) and annual reports of the selected commercial banks. The correlation coefficients and regression models are estimated to test the significance and importance of effects of accounting information system on organizational profitability in Nepalese commercial banks. The study shows that non-performing loan has a negative impact on return on assets and return on equity. It indicates that increase in non-performing loan leads to decrease in return on assets and return on equity. Similarly, credit to deposit ratio has a negative impact on return on assets and return on equity. It indicates that increase in credit to deposit ratio leads to decrease in return on assets and return on equity. Likewise, loan loss provision has a negative impact on return on assets and return on equity. It indicates that increase in loan loss provision leads to decrease in return on assets and return on equity. However, capital adequacy ratio has a positive impact on return on assets and return on equity. It indicates that increase in capital adequacy ratio leads to increase in return on assets and return on equity. Further, bank size has a negative impact on return on assets and return on equity. It indicates that increase in bank size leads to decrease in return on assets and return on equity.

This study examines the determinants of profitability in Nepalese insurance companies. Return on assets (ROA) and return on equity (ROE) are the dependent variables. The selected independent variables are firm size, liquidity, tangibility, firm age, premium growth and total capital. The study is based on secondary data of 27 insurance companies with 108 observations for the study period from 2018/19 to 2021/22. The data were collected from the annual reports of selected Nepalese insurance companies. The regression models are estimated to test the significance and effect of firm specific factors on the profitability of Nepalese insurance companies. The study showed that liquidity ratio has a negative impact on return on assets and return on equity. It means that increase in liquidity ratio leads to decrease in return on assets and return on equity. In contrast, assets tangibility has a positive impact on return on assets and return on equity. It shows that higher the assets tangibility, higher would be the return on assets and return on equity. Similarly, firm age has a positive impact on return on assets and return on equity. It means that increase in firm age leads to increase in return on assets and return on equity. Furthermore, premium growth has a positive impact on return on equity. It means that higher the premium growth, higher would be the return on equity. In addition, total capital has the positive impact on return on assets. It indicates that higher the total capital, higher would be the return on assets and return on equity.

This study examines the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. Return on assets (ROA) and return on equity (ROE) are the dependable variables. The independent variables are succession planning, training and development, employee motivation, organizational culture and employee empathy. The study used primary and secondary sources of data. The primary source of data is used to assess the opinions of the respondents regarding the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study is based on primary data of 131 respondents. The secondary source of data is collected from 27 Nepalese commercial banks for the period from 2014/15 to 2020/21. The data are collected from Economic Survey published by Ministry of Finance, Quarterly Economic Bulletin published by Nepal Rastra Bank and annual report of NRB supervision and economic bulletin of World Bank. To achieve the purpose of the study, structured questionnaire is prepared. The correlation coefficients and regression models are estimated to test the significance and the interplay between employee development factors and succession planning in predicting performance of Nepalese commercial banks. The study showed that succession planning has a positive impact on return on assets and return on equity. It indicates that increase in succession planning leads to increase on return on assets and return on equity. Likewise, training and development has a positive impact on return on assets and return on equity. It indicates that increase in training and development facilities leads to increase on return on assets and return on equity. Similarly, employee motivation has a positive impact in performance. It means that fair employee motivation in the organization leads to increase on return on assets and return on equity. Moreover, organizational culture has a positive impact on return on assets and return on equity. It indicates that better the organizational culture, higher would be return on assets and return on equity. In addition, employee empathy has a positive impact in performance. It reveals that higher the employee empathy, higher would be the return on assets and return on equity.

This study investigates the impacts of political unrest; firm-specific and macroeconomic factors on the financial performance of the insurance industry in Ethiopia during youth-led mass anti-government protests. The study used, Return on Assets (ROA) and Return on Equity (ROE) as dependent variables. Eight key independent (internal and external) variables are also used. The study selected 17 out of 18 due to the availability of data for the period ranging from 2014 to 2022. The descriptive and multiple regression analyses were done. The results of the study indicate that political violence and terrorism (PV&T) have a negative and significant effect on ROA and ROE, while GDP has a positive and significant effect on ROA and ROE. The findings also show that financial risk (FR) has a negative and significant effect on ROA and ROE but a positive and significant effect on ROA and ROE. Furthermore, the study reveals that the size of company (SZ) and premium growth (PG) have a significant and positive impact on ROA but insignificant effect on ROE as well as liquidity (LQ) and asset tangibility (ATG) have a significant negative effect on ROE but insignificant effect on ROA. The inflation rate (INF) has no effect for both models on Ethiopian insurance financial performance. This study is considered one of the first pioneering studies that determined the factors affecting the financial performance of insurance companies in Ethiopia. Therefore, the study gives good insights to policymakers, regulators, and interested parties about enhancing the profitability of insurance companies in Ethiopia. Keyword: - political unrest, firm specific factor, macroeconomic factor, financial performance, insurance industry, Ethiopia JEL Classification G22 G32 F50

This study investigates the impacts of political unrest; firm-specific and macroeconomic factors on the financial performance of the insurance industry in Ethiopia during youth-led mass anti-government protests. The study used, Return on Assets (ROA) and Return on Equity (ROE) as dependent variables. Eight key independent (internal and external) variables are also used. The study selected 17 out of 18 due to the availability of data for the period ranging from 2014 to 2022. The descriptive and multiple regression analyses were done. The results of the study indicate that political violence and terrorism (PV&T) have a negative and significant effect on ROA and ROE, while GDP has a positive and significant effect on ROA and ROE. The findings also show that financial risk (FR) has a negative and significant effect on ROA and ROE but a positive and significant effect on ROA and ROE. Furthermore, the study reveals that the size of company (SZ) and premium growth (PG) have a significant and positive impact on ROA but insignificant effect on ROE as well as liquidity (LQ) and asset tangibility (ATG) have a significant negative effect on ROE but insignificant effect on ROA. The inflation rate (INF) has no effect for both models on Ethiopian insurance financial performance. This study is considered one of the first pioneering studies that determined the factors affecting the financial performance of insurance companies in Ethiopia. Therefore, the study gives good insights to policymakers, regulators, and interested parties about enhancing the profitability of insurance companies in Ethiopia.

Abstract. The purpose of this research isto determine the effect ofReturn On Asset (ROA), Return In Equity (ROE) and firm size towards Corporate Social Responsibility Disclosure. This research use companies listed on the Indonesian Stock Exchange (IDX) and Stock Exchange of Thailand (SET) period 2011 – 2017. Sampling method used in this research was purposive sampling.Samples collected in this research are 21 companies consists of 13 Indonesian companies and 8 Thailand companies. The method of analysis in this research is multiple regression analysis with technique analysis descriptive statistics. The result of hypothesis as follows. First, Return On Asset (ROA), Return On Equity (ROE) and firm size in simultan has an effect on Corporate Social Responsibility Disclosure in BEI and in SET. Second, Return On Asset (ROA) has an effect an effect on Corporate Social Responsibility Disclosure in BEI. Third, Return On Asset (ROA) has an effect an effect on Corporate Social Responsibility Disclosure in SET. Fourth, Return On Equity (ROE) has an effect an effect on Corporate Social Responsibility Disclosure in BEI. Fifth, Return On Equity (ROE) has an effect an effect on Corporate Social Responsibility Disclosure in SET . Sixth, firm size has no an effect an effect on Corporate Social Responsibility Disclosure in BEI. Seventh, firm size has no an effect an effect on Corporate Social Responsibility Disclosure in SET. Keywords. Corporate Social Responsibility Disclosure; ROA; ROE and Firm Size.Abstrak. Tujuan Penelitian ini adalah untuk mengetahui pengaruh Return On Asset (ROA), Return On Equity (ROE) dan ukuran perusahaan terhadap Corporate Social Responsibility Disclosure.Penelitian ini menggunakan perusahaan yang terdaftar di Bursa Efek Indonesia (BEI) dan Stock Exchange Of Thailand (SET) periode 2011 – 2017. Teknik sampling yang digunakan adalah purposive sampling. Sampel yang digunakan dalam penelitian ini berjumlah 21 perusahaan terdiri dari 13 perusahaan Indonesia dan 8 perusahaan Thailand. Teknik analisis data dalam penelitian ini adalah analisis regresi linear berganda. Hasil pengujian hipotesis sebagai berikut. Pertama, Return On Asset (ROA), Return On Equity (ROE) dan ukuran perusahaan secara simultan berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI dan SET. Kedua, Return On Asset (ROA) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Ketiga, Return On Asset (ROA) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET. Keempat, Return On Equity (ROE) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Kelima, Return On Equity (ROE) berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET. Keenam, ukuran perusahaan tidak berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di BEI. Ketujuh, ukuran perusahaan berpengaruh terhadap Corporate Social Responsibility Disclosure pada perusahaan di SET.Kata kunci. Corporate Social Responsibility Disclosure; ROA; ROE dan Ukuran Perusahaan.

The objective of this study is to empirically assess the effect of bank-specific and macroeconomic determinants of Ethiopian private commercial banks financial performance using three measures namely, return on assets (ROA), return on equity (ROE) and economic value added (EVA) for the period 2006 to 2015 by using multiple regression on a sample of seven private commercial banks. The results indicated that performance persists to some extent, indicating the existence of relatively fair competitive market in private commercial banking environment. Regarding the explanatory variables from bank-specific determinants, Capital adequacy (CAP has a significant and positive relation with ROA and significant and negative relation with ROE and EVA. In addition, ASQ has a significant and negative relation with ROA and insignificant and negative relation with ROE and EVA. Whereas ME affect bank performance (ROA, ROE and EVA) significantly and negatively. On the other hand, LIQ and BS affect bank performance (ROA, ROE and EVA) significantly and positively. Furthermore, GDP has an outsized positive and significant effect on both ROE and EVA but an insignificant effect on ROA. Therefore, Ethiopian commercial banks policy makers and managers should give high emphasis on CAP, ASQ, ME, LIQ, BS and GDP as these were found to have significant effect on private commercial banks financial performance. Key words: Financial performance, return on assets (ROA), return on equity (ROE) and economic value added (EVA).

The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments. The purpose of this research is to find out the influence of intellectual capital which is proxy with the Pulic Model of Value Added Intellectual Coefficient (VAIC) through three components include Value Added Capital Employed (VACA), Value Added Human Capital (VAHU), Structural Capital Value Added (STVA) to the company financial performance that is proxy with the return on asset (ROA), Return on Equity (ROE), Return On Investments (ROI) on the company’s Information and Communications Technology (ICT) in Indonesian. The population is ICT companies which are listed in Indonesian Stock Exchange (IDX). The sample collection technique has bean determined by using purposive sampling and it is based on determined criteria therefore the samples are 15 ICT companies that publish financial statements for 6 consecutive years from 2010 to 2015. Multiple linier regressions with the SPSS application 2.1 versions are used in this research. The result of the research show that: 1) VACA, VAHU, STVA have been fix in predicting ROA, ROE, ROI. 2) VACA variable has significant influence to ROA, ROE, ROI in the positive direction. 3) VAHU variable has significant influence to ROA, ROE, ROI in the negative direction. 4) STVA variable has significant influence to ROA, ROE, ROI in the positive direction. Keywords: Intellectual Capital, Value Added Capital Employed, Value Added Human Capital, Structural Capital Value Added, Return On Assets, Return On Equity, Return On Investments.

This research is conducted to know the influence of Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), BOPO, Capital Adequacy Ratio (CAR) to Return on Asset (ROA) and Return on Equity (ROE ) listed on the Indonesia Stock Exchange (IDX) since 2012 until 2016. The data used in this study is obtained from the Financial Statements of Banking Companies Listed on the Stock Exchange for the period of 2012-2016 issued by Bank Indonesia (BI) and the Financial Services Authority (OJK). After passing through the purposive sample stage, then the data is worthy of use as many as 28 Banking Companies taken in the observation of 5 years with the number of 140 samples. To answer the hypothesis proposed in this research, data is analyzed using Path Analysis with AMOS program. The result of research indicate that Non Performing Loan have negative and significant effect to Return on Asset and Return on Equity, Loan to Deposit Ratio have positive and significant effect to Return on Asset and Return on Equity, Net Interest Margin have positive and significant effect to Return on Asset and Return on Equity, BOPO have a negative and significant effect on Return on Asset and Return on Equity, and Capital Adequacy Ratio have positive and significant effect on Return on Asset and Return on Equity. Banking is expected to reduce the level of Non Performing Loan (NPL), optimize the level of Loan to Deposit Ratio (LDR), calculate the cost of funds carefully so as to obtain Net Interest Margin (NIM) optimal, able to suppress the amount of BOPO and pay attention to the provisions given Bank Indonesia related capital adequacy ratio (CAR), so as to increase Return on Asset (ROA0 and Return on Equity (ROE).

This study aims to determine "The Impact of Good Corpoorate Governance to Financial Performance on basic banking companies in Indonesia Stock Exchange". Data collection techniques used purposive sampling and the number of samples in this study were 50 data. From the results with partial test (t) use return on asset (ROA) the board of directors has a positive and insignificant effect on financial performance of return on asset (ROA), board of commissioners has a positive and not significant effect on financial performance of return on asset (ROA), audit committee does not significantly influence financial performance return on asset, good corporate governance has no significant effect on financial performance return on asset (ROA). From the results with partial test (t) use return on equity (ROE) the board of directors has a positive and insignificant effect on financial performance of return on equity (ROE), board of commissioners does not have a significant effect on financial performance on return on equity (ROE), audit committee does not have a significant effect on financial performance return on equity (ROE), good corporate governance has no significant effect on financial performance return on equity (ROE).

This study aims to determine the influence of specific factors on bank BUKU groups in Indonesia. The sample was a conventional bank in 2013-2014. This study used multiple linear regression method. The dependent variable in this study are return on assets (ROA) and return on equity (ROE), while the independent variables used are size, operating efficiency (OE), capital adequacy ratio (CAR), credit risk (CR), asset management ( AM), and portfolio composition (PC). The Result from this study indicate that size has positive effect on ROA and ROE BUKU groups 1, 2, 3, and negative effect onROA and ROE on the group BUKU 4. Operating efficiency has negative effect on ROA and ROE in all BUKU groups. Capital adequacy ratio has negative effect on ROA and ROE in all BUKU groups, except on BUKU 3 has positive effect on ROA. Credit risk has negative effect on ROA and ROE in all BUKU groups. Asset management has positive effect on ROA and ROE BUKU 1,2, and 3, while on BUKU 4 has negative effect. Portfolio composition has negative effect on ROA and ROE BUKU group 1 and 2, and on BUKU 3 and 4 have positive effect.
 Keywords: Bank’s specific factors, profitability, BUKU groups of bank.